On a sunny day in San Francisco, alongside town’s waterfront, households dived into the wacky world of synthetic intelligence contained in the Exploratorium museum.

Guests made shadow puppets for AI to determine, used AI to generate songs, requested chatbots questions and confronted off with AI in a recreation wherein gamers tried to attract photos that solely people would acknowledge. A large robotic hand moved round and other people peered right into a online game chip.

They jotted down their hopes and worries about AI on playing cards displayed within the museum. Hope: AI will remedy most cancers. Fear: Individuals will depend on AI to the purpose they’ll’t assume for themselves.

A visitor listens to the audio component of an exhibit titled Mistaking AI

A customer listens to the audio part of the “Mistaking AI” exhibit on the Exploratorium’s “Adventures in AI” in downtown San Francisco on Thursday.

Billboards for the AI company Fin line Interstate 80 in San Francisco.

Billboards for the AI firm Fin line Interstate 80 because the freeway enters the Monetary District on Wednesday in San Francisco.

“It form of breaks down these guardrails, these huge partitions that individuals have put up round AI, and permits them to have a dialog with any person else,” mentioned Doug Thistlewolf, who manages exhibit improvement on the Exploratorium.

Artwork. Workplace Area. Billboards. Protests. The AI craze has intensified in San Francisco, spreading via work and social life in what some have described as a brand new gold rush. The AI increase, coupled with the election of latest Mayor Daniel Lurie, has additionally infused town with optimism — tinged with nervousness. Some fear in regards to the metropolis’s excessive value of dwelling, and whether or not AI will substitute employees as tech layoffs proceed.

For years, Silicon Valley has been on the middle of innovation with a few of the world’s priceless tech firms reminiscent of Meta, Google, Apple and Nvidia finding their huge headquarters south of San Francisco. AI’s rise, although, has shone a vibrant highlight on San Francisco, dwelling to multibillion-dollar firms reminiscent of OpenAI, Scale AI, Anthropic, Perplexity and Databricks.

AI has lengthy performed an enormous function in shopper expertise, serving to to advocate social media posts, translate languages and energy digital assistants. However the recognition of OpenAI’s ChatGPT — a chatbot that may generate textual content, photos and code — set off a fierce race to propel expertise that touches industries from media to healthcare.

Corporations are battling it out for expertise, providing profitable compensation to recruit high researchers and leaders, whereas investments in AI firms have surged.

Within the first half of 2025, enterprise capital funding for AI firms within the San Francisco Metro space surpassed $29 billion — greater than double the quantity throughout the identical interval in 2022, knowledge from PitchBook exhibits. As of Aug. 5, VC offers for AI startups within the space, which incorporates San Francisco, Oakland and Fremont, made up 46.6% of funding for U.S. AI firms this 12 months.

The headquarters of OpenAI, the maker of the popular chatbot ChatGPT, in Mission Bay, San Francisco.

The headquarters of OpenAI, the maker of the favored chatbot ChatGPT, in Mission Bay, San Francisco.

Precisely how this frenzy will form the way forward for San Francisco, dwelling to cable vehicles and robotaxis, stays to be seen. Ask ChatGPT what SF will seem like in 10 years and it generates a picture of town’s skyline with futuristic structure and alien craft subsequent to the Golden Gate Bridge.

AI has been a “vibrant spot” within the metropolis’s financial system, serving to San Francisco to get well after retailers, workplace employees and a few firms reminiscent of X (previously Twitter) left the downtown space throughout and after the pandemic as distant work picked up.

“The financial influence is [AI companies] take extra workplace area, they pay extra taxes, they rent extra folks,” mentioned Ted Egan, chief economist of town and county of San Francisco.

Over the previous 5 years, AI-related firms have leased greater than 5 million sq. ft of San Francisco workplace area and the quantity is projected to develop, in response to CBRE, an actual property service and funding agency. The town’s workplace emptiness charge of 35.8% within the first quarter could be reduce in half if these firms take up 16 million sq. ft of workplace area by 2030.

San Francisco resident Vijay Karunamurthy has seen town’s increase and bust cycles unfold over the past 25 years whereas working at startups and tech giants reminiscent of Google and Apple.

In 2000, when he moved from Chicago to San Francisco for an engineering job at a knowledge startup, he noticed main enterprise reminiscent of Pets.com collapse in the course of the dot-com crash. Fueled by social media’s recognition, town’s tech sector got here roaring again solely to take successful in the course of the COVID-19 pandemic.

Now town is ascending but once more. Bold entrepreneurs, outdated and new, are advancing highly effective synthetic intelligence instruments that would rework lives.

“That quantity of vitality being concentrated in San Francisco has simply been large for town,” mentioned Karunamurthy, 46, the previous area chief expertise officer at Scale AI, a data-labeling startup. “It means each single night time there’s AI occasions, and should you go to a espresso store, you’ll run into folks engaged on AI.”

Nonetheless, there are many AI skeptics. In late July, outdoors of OpenAI’s headquarters in Mission Bay, a small group of protesters together with an individual dressed up as a robotic held up indicators that mentioned “AI will kill us all” and “AI steals your work to steal your jobs.”

Children interact with the "Giant Mirror" at the Exploratorium's "Adventures in AI" exhibition

Kids work together with the “Big Mirror” on the Exploratorium’s “Adventures in AI” exhibition in Downtown San Francisco on Thursday.

Generative AI’s ubiquity has pressured educators to rethink what and the way they train college students within the school rooms.

Arno Puder, professor and chair of San Francisco State College’s laptop science division, mentioned generative AI represents a historic “paradigm shift.”

The longtime San Francisco resident is equally excited, but in addition a bit of scared, about the way it will have an effect on labor. Over the past two years, he’s seen scholar enrollment in laptop science on the college drop amid tech layoffs and generative AI’s rise. As coding assistants reshape laptop science jobs, the college launched a brand new undergraduate certificates in generative AI for the autumn of 2026.

“Generative AI is a special beast,” Puder mentioned. “That does make me fear a bit of bit, however should you ask me for a prediction on what providers or what the world’s going to seem like in a number of years from now, I don’t know.”

AI’s rise has impressed the creation of latest areas all through San Francisco the place folks can focus on expertise’s advantages and dangers.

Notes written by people visiting the Exploratorium's "Adventures in AI" exhibition list their greatest worries and hopes
Notes written by people visiting the Exploratorium's "Adventures in AI" exhibition list their greatest worries and hopes

Notes written by folks visiting the Exploratorium’s “Adventures in AI” exhibition listing their biggest worries and hopes associated to synthetic intelligence in Downtown San Francisco on Thursday.

Thistlewolf mentioned creating the AI exhibit on the Exploratorium concerned speaking to employees and researchers from tech firms and universities. The exhibit, which runs via mid-September, took roughly a 12 months and half to develop.

Backed by Anthropic, the San Francisco firm that developed the AI chatbot Claude, the exhibit goals to teach folks about AI however doesn’t draw back from the controversy surrounding expertise.

San Francisco resident Martha Chesley, 77, got here to the exhibit along with her grandchildren. Dwelling in San Francisco for 50 years, Chesley sees potential advantages from AI firms coming to town.

“If it brings folks and cash, it’s good for town as a result of proper now we have now a variety of closed storefronts,” she mentioned. “Possibly there could be extra money additionally for housing being constructed.”

All through town, AI startups are broadcasting their mission loudly on billboards and adverts displayed at bus stops and prepare stations. Messages embrace “Cease Hiring People. To Write Chilly Emails” and “Droids ship software program when you contact grass.”

A bus stop advertises Outset, an AI software company, in the Mission District in San Francisco.

A bus cease advertises Outset, an AI software program firm, within the Mission District in San Francisco.

(Florence Middleton/For The Instances)

AI adverts may be noticed within the Mission district, a neighborhood deeply rooted in Latino tradition and historical past. The world, crammed with standard taquerias, colourful murals and a park with a view of the downtown skyline, has struggled with homelessness like different elements of town.

At a bus cease on sixteenth Road, an advert from AI startup Outset struck a constructive tone: “Take heed to people. Don’t substitute them.”

Based in downtown San Francisco in 2022, Outset created an AI interviewer so researchers might rapidly collect suggestions from extra folks to raised perceive buyer wants and enhance merchandise.

The corporate’s 36-year-old chief government, Aaron Cannon, mentioned earlier than the rise of ChatGPT, he and his co-founder experimented with AI methods that may generate and perceive human language and noticed its potential.

“I don’t assume both of us might have advised you it was going to utterly take over the world,” he mentioned. The San Francisco resident mentioned town’s expertise pool additionally makes it a gorgeous location for startups. He declined to reveal its funds however mentioned the corporate, which employs 15 and counts Microsoft amongst its purchasers, is “rising quick.”

All through San Francisco, founders and actual property firms have dubbed sure areas as AI hubs.

A billboard advertising Cluely, an AI company, rises over Mission Street in downtown San Francisco.

A billboard promoting Cluely, an AI firm, rises over Mission Road in downtown San Francisco.

(Florence Middleton/For The Instances)

Hayes Valley, a neighborhood with Victorian homes, boutique outlets and classy eating places, bears the nickname “Cerebral Valley,” a nod to the hacker homes and AI communities that popped up within the space.

Jamestown, an actual property and funding firm, markets the Northern Waterfront an rising AI hub after leasing greater than 43,000 sq. ft of workplace area to AI firms. A few of the startups work on AI mortgage servicing or AI-powered lip syncing expertise.

Positioned close to public transportation, water and greenery, the contemporary air and serene nature of the world has attracted AI entrepreneurs that need to collaborate in individual, mentioned Michael Phillips, principal and chairman of Jamestown.

“In the event you’re engaged on these quick to market, extremely aggressive merchandise,” he mentioned, “you actually must be collectively.”


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